Information Technology
www.santa-ana.org/IT
Item # 18
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
January 20, 2026
TOPIC: Volume Licensing and Maintenance for Microsoft Software and Products
AGENDA TITLE
Agreement with Insight Public Sector, Inc. for Volume Licensing and Maintenance for Microsoft Software and Products (Specification No. 26-005) (Non-General Fund)
RECOMMENDED ACTION
Authorize the City Manager to execute an agreement with Insight Public Sector, Inc. to provide volume licensing and maintenance for Microsoft software and products in an amount not to exceed $2,900,000, for a term beginning February 1, 2026 and expiring January 31, 2029. (Agreement No. A-2026-XXX)
GOVERNMENT CODE §84308 APPLIES: Yes
DISCUSSION
The City of Santa Ana (City) licenses many products from Microsoft Corporation. The City’s core software infrastructure is based on Microsoft’s desktop, server, collaboration, and development products. The Microsoft Enterprise Agreement positions the City to continue to acquire product licenses, subscriptions, and software assurance at a volume discount.
The risk from the liability of using unlicensed Microsoft products could be monetarily very large. Purchasing a Microsoft enterprise volume license for the entire organization is a cost-effective means for managing Microsoft software as a resource and greatly simplifies licensing by requiring a single transaction to acquire licenses for the City. In addition, the enterprise volume license allows the City to obtain software assurance which will provide the City with the legal right to continue to receive the current version of some Microsoft products used by the City, including our Windows Servers and SQL Server databases.
The City is planning to migrate to Microsoft 365 starting in 2026. Microsoft 365 is a cloud-powered subscription service providing access to Microsoft's popular productivity apps (Word, Excel, PowerPoint, Outlook) plus cloud services like OneDrive storage, Teams collaboration, and advanced security features, available across devices (PC, Mac, mobile) with continuous updates and optional AI integration (Copilot).
Volume Licensing and Maintenance for Microsoft Software and Products January 20, 2026
5 5
1 8
The City purchases Microsoft software licenses through a joint, volume licensing program known as the County of Riverside’s Microsoft Enterprise Agreement (‘MSEA’).
This request is for a renewal of the City’s MSEA. The County of Riverside’s master agreement with Microsoft is based on participation of any county, city, and special district in the state. The very large volume of Microsoft products used by these statewide agencies has allowed the County of Riverside to obtain deep discounts for these products which, in turn, are passed on to agencies participating under this master agreement with Microsoft.
Specifically, this is a request for the City to participate in the volume licensing and support services agreement for Microsoft Product Licensing and Maintenance as described in the Riverside County Microsoft Enterprise Agreement (MSEA), effective November 1, 2019. The City’s participation under this agreement will ensure the City the lowest pricing for Microsoft licensing and support services.
Staff recommends contracting with Insight Public Sector, Inc. as Microsoft’s reseller for the agreement (Exhibit 1). The County of Riverside conducted a competitive process to select firms qualified to serve as a Licensing Solution Provider (LSP) under the County of Riverside / Microsoft agreement and Insight Public Sector, Inc. was one of the firms selected.
Santa Ana Municipal Code, Section 2-807(d), authorizes the City to purchase against contracts from any public agency utilizing a competitive bid process. The County of Riverside Agreement No. ITARC-00930 (Exhibit 2) with Insight Public Sector, Inc. for Microsoft products and services was awarded as a result of open, competitive bidding, and meets the City’s requirement.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
Funding is available in the current FY 2025-26 budget and future fiscal year funding for any extension periods will be included in proposed budgets for City Council consideration.
Volume Licensing and Maintenance for Microsoft Software and Products January 20, 2026
5 5
1 8
Agreement
Year
Fiscal
Year
Accounting
Unit –
Account #
Fund
Description
Accounting Unit,
Account Description
Amount
FY 25-26
(Feb-Jun)
10920140-
62306
Information
Technology
Network &
Telecommunications,
Software Maintenance &
Support
$ 500,000
Year 1
FY 26-27
(Jul-Jan)
10920140-
62306/6651
Information
Technology
Network &
Telecommunications,
Software Maintenance &
Support/ Computer
Software Subscriptions
$700,000
FY 26-27
(Feb-Jun)
10920140-
62306/6651
Information
Technology
Network &
Telecommunications,
Software Maintenance &
Support/ Computer
Software Subscriptions
$ 500,000
Year 2
FY 27-28
(Jul-Jan)
10920140-
62306/6651
Information
Technology
Network &
Telecommunications,
Software Maintenance &
Support/ Computer
Software Subscriptions
$700,000
Year 3
FY 27-28
(Feb-Jun)
10920140-
62306/6651
Information
Technology
Network &
Telecommunications,
Software Maintenance &
Support/ Computer
Software Subscriptions
$ 500,000
Total $2,900,000
EXHIBIT(S)
1. Agreement with Insight Public Sector, Inc. (A-2026-XXX)
2. County of Riverside Master Services Agreement No. ITARC-00930 Submitted By: Jack Ciulla, Chief Technology Innovations Officer Approved By: Alvaro Nuñez, City Manager